The second ingredient for financial success is planning. You have to create a plan! Burning passion without the practical, every day steps to accomplish something will get you nowhere fast. You'll end up wasting time, effort and money, only to find yourself back right to where you started...spinning your wheels and wondering how to get from point A to point B. Your plan is your action steps to direct the compelling emotion towards a realistic goal. Have you ever heard a message spoken that got you so stirred up, so inspired to do something...but when you walked away, you had no idea where to start? That's passion without a plan, and it's something that inspirational speakers are excellent at! You get all fired up to act, but don't have a clue what to do. Your plan must go hand in hand with your passion in order for you to be successful.
Your plan needs to be in writing, and should consist of the following items:
1. Your priorities - what is important to you when it comes to money? If you're married, you and your spouse may both have different priorities and that's ok! Just make sure you record them both.
2. Your goals - Where do you want to be financially in 3 months, 1 years, 5 years, 15 years? Set some short term goals, some mid-term goals, and some long term goals. Savings, debt reduction, retirement planning, and planning for future purchases are just a few things you can structure your goals around.
3. Your cash flow plan - Simply put, your budget. We don't care how you spend your money, as long as you're spending it on purpose. Make sure you tell every penny how it's going to be spent...ON PAPER...before you spend it. Then track every penny you spend so that you can see how you're doing to your plan.
Need some guidance getting your plan together? That's what we're all about at Northwest Financial Navigators - helping you get excited about change, creating a customized plan that fits your specific situation, and helping you get on track and stay on track for the long haul. We'd love to get you started on the road to financial success!
